Group 1 - The article explains the concepts of opening and closing positions in options trading, where opening a position involves buying or selling options to establish a position, and closing a position involves reversing the initial action to eliminate any rights or obligations [2]. - It defines a long position as a rights position established by buying options, while a short position is an obligation position established by selling options [2]. - Closing a position means that the investor no longer holds any rights or obligations after executing the reverse transaction [2]. Group 2 - The article outlines six basic types of options trading instructions on the Shanghai Stock Exchange: buy to open, sell to close, sell to open, buy to close, covered call writing, and covered call closing [3]. - Buying to open involves paying a premium to increase the rights position [4]. - Selling to close allows the investor to receive a premium and reduce the rights position [5]. - Selling to open generates a premium and increases the obligation position, requiring margin payment at the time of opening [5]. - Buying to close involves paying a premium to reduce the obligation position and reclaiming the corresponding margin [5]. - Covered call writing locks in the underlying securities as delivery securities while selling call options [6]. - Covered call closing reduces the obligation position and releases the underlying securities through unlocking instructions [6].

Group 1 - The term "underlying asset" refers to the basis of options trading, specifically in the context of 50ETF options, where the underlying asset is the 50ETF fund that tracks the SSE 50 Index, composed of the 50 largest stocks on the Shanghai Stock Exchange [1] - Each 50ETF options contract has a strike price and an expiration date, with the strike price being the predetermined price at which the underlying asset can be bought or sold, and the expiration date being the day the option can be exercised [2] - As a buyer of an options contract, there are two choices: to sell the contract for profit if the price has appreciated, or to exercise the option on the expiration date to buy or sell the specified quantity of the 50ETF fund [3] Group 2 - The price of 50ETF options contracts fluctuates significantly with the price movements of the underlying asset, the 50ETF, due to the inherent leverage in each options contract, which can amplify price changes [5] - Many investors engage in trading 50ETF options contracts, which are influenced by the price volatility of the underlying asset, leading to potential profits or losses depending on the direction of the market [5]